Mr. Wu Xiongang from ARM: China¡¯s Semiconductor Ushering in a New Opportunity of $10 Trillion

Updated:2018/6/8 16:01

At the recent "DeepTech2018 semiconductor industry momentum Forum", Mr. Wu Xiongang, executive chairman and CEO of ARM China, said that China's semiconductor industry will usher in a rapid development opportunity of 10 trillion dollars and ARM China will help Chinese chip market to achieve a growth of one hundredfold with three strategies.

China’s semiconductor ushers in a new opportunity of 10 trillion dollars

As indicated by Mr. Wu Xiongang, in the past over 20 years, ARM has forged a global ecosystem of science and technology with many partners. Within these 20 years, total shipments of our ecosystem are more than 100 billion pieces. However, what’s more important is that, according to the current speed of industrial development, the quantity will reach 100 billion for the next 4 years. Over the next 30 years, total cumulative shipments will exceed 1 trillion pieces.

The semiconductor industry is of the largest scale, most extensive coverage, fastest growing output value and most sustainable ecosystem in the world. But what does such ecosystem mean for the whole industry? According to the research from Softbank, the average output value produced by each smart device in the future is at least $30. For global industries, this is an enormous industrial development opportunity of $30 trillion. Mr. Wu Xiongang thinks China market will account for one third of the total share, meaning that there will be a huge development opportunity of $10 trillion.

"While smartphone shipments started falling in the last quarter and the whole semiconductor industry faced some challenges, this is just the beginning." Mr. Wu Xiongang pointed out that by 2026, growth in the semiconductor market will slow down, from current $21 billion to $32 billion in the future. But at the same time, emergence of internet of things, 5G and smart devices will bring a new wave of revolution and promote the industrial structure to change dramatically. The whole chip market in the future will reach more than $400 billion from current over $200 billion.

Mr. Wu Xiongang believes this is a huge opportunity for Chinese industry. "Because although the semiconductor industry in China in the past ten years has made rapid development, the current market share of China in the whole world in many fields is almost zero, such as in fields of automotive and industrial control and etc. But these are fast-growing markets, which will bring us lots of opportunities in the future.